The Wall Street Journal Reported on Tuesday
Some members of oil exporters are exploring the idea of suspending the OPEC + supply agreement with Russia. This would allow countries like Saudi Arabia and the United Arab Emirates to ease the supply crisis, pushing global crude oil prices above $ 120 a barrel this week.
Saudi Arabia, the current head of the OPEC, has indicated to Western allies that it is prepared to increase its oil production if Russian production falls sharply as a result of sanctions imposed on Ukraine’s invasion in February, the Financial Times Reported
. An agreement could be reached early Thursday at a meeting of OPEC and Russian energy ministers. According to Reuters
Saudi Arabia had previously rejected the US request
To increase production beyond the long-term allocation contracted with Russia and other non-OPEC manufacturers. But concerns that skyrocketing prices could push the world into recession are prompting us to reconsider.
The global benchmark for Brent crude hit $ 125 a barrel on Tuesday, its highest level since early March. US WTI oil reached nearly $ 120 a barrel. Both retreated in response to media reports, with Brent falling another $ 2.3% below $ 114 and WTI 1.9% to $ 113 at 5 am ET.
“[The] Late today, the OPEC + meeting will be a key one if Russia is exempted from its production quota, which will allow two major swing makers, Saudi Arabia and the UAE, to increase exports to fill the gap, ”said Jeffrey Haley, senior market analyst for the Asia-Pacific region in Onda.
“None of that will alleviate the global refinement crisis / crisis of rising petrol and diesel prices, but it will be a rare good news for the global economy and the fight against inflation,” he added.
Russia’s invasion of Ukraine prompted Western powers to ban imports of Russian crude and refined goods. Earlier this week, the European Union agreed to ban 90% of Russian oil by the end of this year.
At the same time, Russia began suspending natural gas exports to some EU countries – adding to the energy supply crisis, which helped push US and European inflation to its highest level in decades. Petrol and diesel are at an all-time high
Reuters announced on Thursday, citing two OPEC + sources Russian oil production has fallen by about 1 million barrels a day in recent months as a result of Western sanctions.